Bontempi, Maria Elena; Golinelli, Roberto - In: Quantitative Finance 12 (2012) 11, pp. 1733-1751
We present a parsimonious representation of debt-ratio dynamics that is able to nest the Trade-Off, Pecking-Order and Market-Timing theoretical models, at the same time avoiding the poolability of the slope parameters. The inference on the heterogeneous speed of adjustment of the firm towards...